US EditionBill Ackman's Pershing Square IPO Misses Target Price—Down 16%
The deal created two separately traded NYSE vehicles and gave public investors direct access to Ackman’s concentrated portfolio and management business.
- On Wednesday, Bill Ackman, CEO of Pershing Square Capital Management, launched Pershing Square USA Ltd. on the New York Stock Exchange, raising $5 billion at $50 per share in his long-awaited push into public markets.
- Seeking to emulate Berkshire Hathaway's success, Ackman is building a permanent capital vehicle designed for long-term value creation, planning to host investor days and annual meetings in Berkshire CEO Warren Buffett's shareholder culture model.
- To attract retail participants, the fund lowered minimum purchase orders to $250 and omitted performance fees, focusing on large-cap names including Amazon, Uber, and Brookfield.
- The transaction establishes two separately traded entities: closed-end fund PSUS and asset manager Pershing Square Inc. Investors purchasing PSUS shares receive one free share of Pershing Square Inc. for every five acquired.
- Leveraging more than 2,600% cumulative returns since 2004 per roadshow materials, Pershing Square credits its macro hedging strategy with generating outsized gains during market dislocation, supporting Ackman's ambition to build one of the world's most valuable investment platforms.
20 Articles
20 Articles
Bill Ackman’s Pershing Square plunges 18% in NYSE debut
Bill Ackman's long-anticipated Wall Street debut flopped on Wednesday, as shares of his new closed-end fund tumbled 18% on the New York Stock Exchange despite the hedge-fund billionaire's rampant following on social media.
Bill Ackman's Pershing Square USA tumbles 18% in its stock-market debut
NYSEShares of Bill Ackman's hedge fund dropped in their first day of trading.Pershing Square USA, the firm's closed-end fund, closed down by 18%.Ackman has touted the IPO as a way for retail to get access to hedge fund management.Pershing Square USA had a tough first day of trading, falling double digits during Wednesday's session.The IPO marked Bill Ackman's public trading trading debut. The hedge fund legend has been vocal about his aspiration…
Offer, which had as its goal to raise up to US$ 10 billion, will result in two listed entities: the closed fund Pershing Square USA Ltd. and the asset manager Pershing Square Inc.
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